With Lam Research Stock Sliding, Have You Assessed The Risk?
Lam Research (LRCX) stock is down 5.1% in a day. The recent slide reflects renewed concerns around slowing growth in its China and NAND memory markets and broader sector weakness, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Lam Research stands today.
- Size: Lam Research is a $196 Bil company with $20 Bil in revenue currently trading at $154.98.
- Fundamentals: Last 12 month revenue growth of 25.7% and operating margin of 33.0%.
- Liquidity: Has Debt to Equity ratio of 0.03 and Cash to Assets ratio of 0.31
- Valuation: Lam Research stock is currently trading at P/E multiple of 29.1 and P/EBIT multiple of 25.3
- Has returned (median) 180% within a year following sharp dips since 2010. See LRCX Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside High valuation – making the stock Fairly Priced. For details, see Buy or Sell LRCX Stock
That brings us to the key consideration for investors worried about this fall: how resilient is LRCX stock if markets turn south? This is where our downturn resilience framework comes in. Suppose LRCX stock falls another 20-30% to $108 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- LRCX stock fell 56.8% from a high of $72.98 on 14 January 2022 to $31.50 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 11 December 2023
- Since then, the stock increased to a high of $168.71 on 11 December 2025 , and currently trades at $154.98
| LRCX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -56.8% | -25.4% |
| Time to Full Recovery | 423 days | 464 days |
2020 Covid Pandemic
- LRCX stock fell 45.0% from a high of $34.16 on 13 February 2020 to $18.79 on 20 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 14 July 2020
| LRCX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -45.0% | -33.9% |
| Time to Full Recovery | 116 days | 148 days |
2018 Correction
- LRCX stock fell 46.1% from a high of $22.87 on 12 March 2018 to $12.33 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 9 September 2019
| LRCX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -46.1% | -19.8% |
| Time to Full Recovery | 259 days | 120 days |
2008 Global Financial Crisis
- LRCX stock fell 75.0% from a high of $6.00 on 17 July 2007 to $1.50 on 19 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 May 2014
| LRCX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -75.0% | -56.8% |
| Time to Full Recovery | 2,011 days | 1,480 days |
Feeling jittery about LRCX stock? Consider portfolio approach.
The Best Investors Think In Portfolios
Individual stocks are unpredictable. A smart portfolio keeps you invested, limits downside shocks, and provides upside exposure
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.